Corcoran, Minn., Code of Ordinances ch. 118 § 118.03

A. Rental Dwelling License.
1. No person, partnership, business entity, or corporation shall operate, let, or cause to be let, a rental dwelling or RDU without a license for each building.
2. No person, partnership, business entity, or corporation shall operate, let, or cause to be let a structure or portion of a structure as a rental dwelling or rental dwelling unit that is not designed for residential occupancy (e.g., a shed or garage).
3. No property owner shall be permitted to license more than five rental dwellings that qualify as a single-family residence, a twin-home, and/or townhome, unless the property owner:
a. Is a public housing agency; or
b. Operates State licensed residential facilities within the City;
c. Rented out more than five properties prior to July 1, 2023, and applied for rental licenses for all affected properties prior to January 1, 2024. Any excess rental licenses granted to an individual or entity under this paragraph cannot be transferred to other properties or property owners. The property owner is not entitled to excess rental licenses once an excess rental dwelling license is no longer valid due to any reason including failure to renew, revocation, or sale of the property.
Principal owners or controllers of legal entities which own one or more rental dwellings shall be subject to this cap as individual principal owners or controllers. For illustration, but not limitation, no person or entity may circumvent this restriction by maintaining ownership interests in multiple separate owner entities and each such ownership interest shall be counted toward the cap set forth herein.
4. A rental dwelling license shall be valid for a 1-year cycle beginning on July 1st each year. A current licensee who intends to continue letting a rental dwelling shall apply for a license renewal at least thirty (30) days before the end of the then-current licensing term.
5. A residential rental property owner owning residential rental property at the time of the adoption of this chapter shall have 180 days to comply with the licensing requirements of this chapter. Rental property owners shall have 365 days to comply with the provisions of Chapter 87 (Property Maintenance Code) based on the dated notice identifying any violations confirmed at the initial license inspection. However, if the Code Compliance Official determines there is a life-threatening violation of the Property Maintenance Code (e.g., inoperable smoke alarms), the property owner and/or licensee shall address such violations within 30 days of the dated notice identifying such a violation.
B. License Exemption.
1. The owner of a rental dwelling or RDU is exempt from the licensing requirements of this section if the property qualifies and is registered with Hennepin County as a relative homestead. In order to qualify for a relative homestead, the person living in the rental dwelling unit must be related to the property owner.
a. The property owner must notify the City in writing within 30 days of the property no longer qualifying as a relative homestead.
2. This chapter does not apply to hotels, motels, hospitals, and high school dormitories.
3. This chapter does not apply to single-family homes and townhomes in which the owner resides within the dwelling and lets a room or rooms within a dwelling exclusively to a relative as defined by this Chapter.
4. This chapter does not apply to single-family homes and townhomes in which the owner resides within the dwelling and lets a single room to up to two individuals who are not related to the owner or lets multiple rooms to individuals related to each other but not related to the owner. However, a license shall be required in the event an owner lets more than one room to individual tenants unrelated to the owner and to each other.
5. In instances of single-family dwellings with an accessory dwelling unit or two-family dwellings in which both units are under the same ownership, only the dwelling unit in which the owner resides is exempt from rental licensing, and only to the extent such exemption is applicable, per this Chapter.
C. Applications. An application for license shall be made on a form provided by the City. The license application shall contain the following information:
1. Property Owner Information.
a. The name, address, phone number, and complete information of the property owner if the owner is an individual.
b. The name, address, phone number, and complete information of the at least one principal officer, manager, or director, if the property owner is a business entity.
i. Business entities seeking a license shall provide a list of all principal owners, officers, managers, and directors of the entity.
2. Designation of Property Manager, Contact Information. For all rental dwelling licenses, the license applicant must designate and provide a physical business hours address and 24-hour contact information for the Manager of the rental dwelling, as defined in this chapter. The Manager may be the owner of the rental dwelling or another person who has been provided authority and assigned the duty to exercise control over the rental dwelling and ensure compliance with the City Code. For all rental dwellings which are not single-family rental dwellings, the applicant must also identify and provide a physical business hours address and 24-hour contact information for a second Manager for such rental dwellings. All rental dwelling Managers must reside or have an office address within 90 miles of the rental dwelling unit. A P.O. box address for the property manager will not be accepted. The Owner of a rental dwelling must notify the City, in writing, immediately upon any change of Manager. Owner agrees that his/her Manager of record with the City shall be authorized to accept all notices, including formal service of documents, on behalf of the Licensee.
3. Number and Type of Rental Dwellings. The number of units and types of units (condominium, apartment, townhome, twin-home, single-family home, and the like) within the rental dwelling.
4. Principal Tenants. The name, telephone numbers, and addresses of principal tenants, if any, are required.
D. Changes.
1. The Code Compliance Official must be notified in writing of any changes to the name(s) and contact information provided on the application.
2. A license is non-transferable. If there is a change in the ownership of the rental dwelling, a new license is required.
3. If changes are made in the number or type of units, the owner shall apply to amend its license.
E. Fees.
1. The application fee shall be determined by the City Council from time to time and made a part of the City's fee schedule. The application fee shall be paid at the time of application.
2. Renewal license fees, as set forth within the City's fee schedule, shall be due at the time of renewal and prior to the license expiration date.
3. In the cases of new, unlicensed dwellings, license fees shall be due upon issuance of the certificate of occupancy.
4. In the case of initial licensing, license fees shall be due prior to issuance of the respective license and are due within 30 days of the date of the invoice.
5. In the case of a licensing period of less than one (1) year, license fees may be prorated as set forth by City Council action, and in the City Council's sole discretion.
6. The license fee shall include the initial inspection and one (1) follow-up inspection. A fee, established by the City Council, shall be charged for any reinspection or attempted reinspection required, whether due to the failure of the reinspection, the Rental Housing Inspector's inability to gain access to the dwelling at the time of attempted reinspection, or otherwise, and must be paid before a license will be issued.
7. An owner of a rental dwelling or RDU who fails to obtain an operating license or approval of an affidavit certifying an applicable exemption, will be subject to an administrative service charge set by the City Council, in addition to any other penalties contemplated within this chapter.
8. A license fee paid later than ten working days after the prescribed date is subject to an additional administrative service charge set by the City Council.
9. Once issued, a license is nontransferable and the license is not entitled to a refund of any license fee upon revocation or suspension, or transfer of ownership.
F. Tenant Register. As a condition of the license, the applicant must, as a continuing obligation, maintain a current register of tenants and other persons who have a lawful right to occupancy of a rental dwelling. In its application, the applicant must designate the name of the person or persons who will have possession of the register and must promptly notify the Code Compliance Official of any change in the identity, address, or telephone numbers of such person. The register must be available for inspection by city officials at all times.
G. Notification Requirements for Public Hearings. The licensee must, as a continuing obligation of the license, provide written notice to tenants or in the alternative, post the written notice in the lobby or common area of the rental dwelling for any public hearing received by the owner that pertains to the rental dwelling or any adjacent right-of-way.
H. Display of License Certificate. The license certificate must be exhibited in a conspicuous place at or near the entrance to the rental dwelling. For buildings containing more than three RDUs, the certificate must be displayed in the rental office or other common area accessible to all tenants of the licensed building.
I. Rental Density for Single-Family, Townhome, and Twin-Home Rental Dwellings.
1. In a low-density residential zoning district (5 units or less per acre), no more than 15% of the lots on any block shall be eligible to obtain a rental license and the number of rental licenses shall be capped as set forth in the table below, unless an exemption is granted by the City Council as provided herein or the rental dwelling qualifies as a residential facility licensed by the state. Table 1 indicates how many lots per block are able to be licensed as a rental property based on the lots that exist on the block.
Table 1 Lots/Block Rental Dwellings Allowed 1-14 2 15-24 4 25-34 5 35-44 7 45-54 8 55-64 10 65-74 11 75-84 13 85-94 14
2. The following guidelines shall apply to determine eligible blocks and lots.
a. If a block contains more than one type of zoning district, only the lots within the low-density residential zoning district shall be included in the calculation of the total number of lots per block.
b. Commercial or industrial uses located within or adjacent to a low-density residential zoning district shall not be included in the calculation of the total number of lots per block.
c. If the number of rental dwellings meets or exceeds the permitted number of rental dwellings per defined block on or after the effective date of this chapter, no additional rental licenses shall be approved for the block, unless an exemption is granted by the City Council due to a demonstrated financial hardship of a property owner who owns no more than one other residential property within the City or the rental dwelling qualifies as a State licensed residential facility. Bona fide existing rental licenses may be renewed, however, should a rental license not be renewed, or if the rental license is revoked or lapses, the rental license shall not be reinstated unless it is in conformance with this subchapter and other applicable sections of the City Code.
d. If the number of rental properties meets or exceeds the permitted number of rental properties per defined block on the effective date of this chapter, a property owner may request an exemption to allow an additional rental property for that block. The Council may grant or deny an exemption from the block density limit in its sole discretion. Persons requiring an exemption must make an annual application to the City Council.
J. Tenant Background Checks and Lease Agreements. Upon request, the applicant must provide a copy of third party or comparable background checks for tenants and a copy of the lease.
K. Contracts for Deed. A property sold pursuant to a contract for deed must be recorded against the property or the property will be deemed a rental property and a license will be required.
L. Investigations.
1. For all new applications, a background investigation will be conducted on the property owner listed on the application. The City may request additional information from the license applicant regarding all property owners, if the property is owned by individuals or regarding all officers, managers, or directors, if the property is owned by a business entity, and may conduct additional background investigations as it deems necessary. The applicant shall pay a background investigation fee for each background investigation conducted.
2. For renewal applications, background investigations are not required, and no background investigation fee shall be required; however, the City may conduct a background investigation, at its sole discretion, at the City's cost. The results of a discretionary background check may be used to enforce the provisions of this Chapter the same as the results of mandatory background checks.
M. A license will not be granted to or held by a person who:
1. Is under 18 years of age.
2. Is not a citizen of the United States or a resident alien of the United States.
3. Is overdue, or whose spouse is overdue in payments to the City, County, or State of Minnesota, of taxes, fees, fines, or penalties assessed against them or imposed upon them.
4. Has been convicted, within the last 10 years of a gross misdemeanor or felony for which a jail sentence may be imposed; and:
a. The crime is directly related to the licensed activity, and may include property crimes, financial crimes, or offenses of a fraudulent, violent, or sexual nature; and
b. The granting of a license will contravene the purpose of this Chapter as set forth in Section 118.01 supra; and
c. The applicant has not shown by competent evidence sufficient rehabilitation and present fitness to perform all obligations of a licensee pursuant to this Chapter.
5. Is not the property owner.
6. Has not paid the license and investigative fees required by this Section.
7. Is ineligible due to prior license revocations pursuant to Section 118.08(C)(1).